Q2 2024 India Grid Trust Earnings Call Transcript
Key Points
- India Grid Trust (BOM:540565) reported a 20% year-on-year growth in revenue and a 4% increase in EBITDA.
- The company successfully acquired Virescent, significantly increasing its solar capacity and assets under management.
- Collection rates surpassed expectations, with 114% for transmission and 127% for solar, aiding the net distributable cash flow (NDCF).
- The company raised INR 400 crores through Preferential Allotment, attracting reputed investors and family offices.
- India Grid Trust (BOM:540565) increased its distribution per unit (DPU) guidance for FY '24 to INR 14.10, reflecting a 7.5% year-on-year increase.
- EBITDA growth was limited to 4% due to onetime integration and other expenses related to the Virescent acquisition.
- The net debt to assets under management (AUM) ratio stands at 63.5%, indicating a high level of leverage.
- The company faces challenges in maintaining high availability and reliability, with some issues in insulator flashovers affecting performance.
- There are concerns about the sustainability of high DPU growth rates, given the reliance on accretive acquisitions and market opportunities.
- The company is dealing with increased compliance and transaction costs due to the large number of legal entities it operates.
Ladies and gentlemen, good day, and welcome to the India Grid Trust Q2 FY '24 Earnings Conference Call hosted by Axis Capital Limited. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Jiten Rushi from Axis Capital Limited. Thank you, and over to you, sir.
Thank you, Seema. Good evening, everyone. On behalf of Axis Capital, I'm pleased to welcome you all for the Q2 and H1 FY '24 Earnings Conference Call of India Grid Trust. We have with us the management team represented by Mr. Harsh Shah, Chief Executive Officer and Whole-Time Director; Mr. Navin Sharma, Chief Financial Officer; Ms. Meghana Pandit, Chief Investment Officer; and Mr. Satish Talmale, Chief Operating Officer. We will begin with the opening remarks from the management followed by interactive Q&A session. Thank you, and over to you, sir.
Thank you, Jiten, and thank you,
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